Steven Thomas, OC Housing Report dated June 16, 2016
REALTORS® on the streets of Orange County are describing a housing market that is obviously in transition. Some homes fly off the market in seconds, while others sit with very few showings. Some buyers are starting to take their time as summer distractions set in, yet others are chomping at the bit and are ready to jump at a moment’s notice. What is going on? This is the time of the year where the market seems a bit like Dr. Jekyll and Mr. Hyde.
An ominous sign of a market in flux are the growing number of open house directional arrows sprouting up at busy intersections. Typically, more open house signs mean that homes are not flying off the market as quickly as they once did. This is due to a combination of reasons.
The number one reason that homes are sitting a bit longer right now (and they will sit even longer as the Summer Market evolves) is that sellers are not getting away with overpricing and stretching the asking price. Demand falls at the end of the Spring Market during the graduation season, and it falls further as all of summer’s distractions set in.With demand falling, buyers start to bump into each other less and their mindset changes as well. They are no longer willing to overpay for their home; instead, they pursue theFair Market Value for a home.